Eaton Reports 6% Organic Sales Growth In Q4, Provides FY22 Guidance

Eaton Corp PLC ETN reported fourth-quarter net sales growth of 2.4% year-over-year to $4.798 billion, missing the consensus of $4.90 billion.
The sales increase consisted of 6% organic growth and 7% growth from acquisitions, offset by 10% from the divestiture of the Hydraulics business and 1% from unfavorable currency translation.
Sales by segments: Electrical Americas $1.92 billion (+12.6% Y/Y), Electrical Global $1.42 billion (+13.7% Y/Y), Aerospace $759 million (+40% Y/Y), Vehicle $610 million (-1.6% Y/Y) and eMobility $88 million (+3.5% Y/Y).
Adjusted EPS improved 19% Y/Y to $1.72, beating the consensus of $1.71.
The segment operating profit increased by 13.6% Y/Y to $926 million, and the margin expanded by 191 bps to 19.3%.
Eaton's operating cash flow for FY21 was $2.2 billion, adjusted operating cash flow was $2.7 billion and adjusted free cash flow was $2.1 billion.
1Q22 Outlook: Eaton anticipates organic growth of 7-9% and adjusted EPS of $1.55 - $1.65 (consensus $1.63).
FY22 Outlook: The company expects organic growth of 7%-9% and adjusted EPS of $7.30 - $7.70, up 13% at the midpoint over 2021 (consensus $7.42).
Price Action: ETN closed lower by 2.84% at $156.83 on Thursday.

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